Incorporate an Online Business or Form an LCC

incorporate.com can help you incorporate or form an LLC in as little as 10 minutes. Protect your personal assets and gain tax advantages for your Internet business today. Our online form is quick and easy and our knowledgeable representatives can help you learn more abut how to incorporate your online business and gain a greater understanding of the benefits it will give you.

I have an online auction site where transactions take place in different states. What should I know about my duties and responsibilities to collect sales tax in multiple states? Do I need to incorporate my online business?

If you are looking to incorporate a business online, understanding sales tax compliance is important. As an online entrepreneur, your duties and responsibilities are much the same as for a regular retail business. Even though you have transactions in many states, all with different sales tax laws, it is not your responsibility to collect the sales taxes for all states. Online businesses are required to collect and pay a sales tax when they deliver products and some services to a state in which they have a physical presence. This usually means having an office, store or other facility; however, if a business sends a sales force into a state, it is also considered a physical presence. Some products or services are exempt. Rules and regulations vary by state and sometimes within the state. Consult your accountant or a tax specialist for more specific information about your state.

I use the Internet to expand my business and increase my customer base. Should I incorporate my online business? Will forming a corporation or LLC help me succeed?

Yes. If you are interested in learning how to incorporate online, some important features to consider include:

Credibility. Often when a potential customer is choosing an expert online with which to do business, they will first look to see if the company appears reputable. Having an Inc. or LLC after the name of your online business adds immediate credibility and authenticity.

Asset protection. If you operate as a sole proprietor or in a general partnership, your personal assets are at risk from business debts or possible lawsuits. However, owners of corporations maintain separate business and personal identities; therefore, your personal assets are protected from any liability incurred by your business.

Tax treatment. Tax rates for business entities are lower than the individual tax rate. In addition, expenses like insurance and travel for business purposes may be eligible tax deductions.

Share the responsibility. Business entities can raise additional capital for their business by attracting investors to provide financial help or lend expertise. Your success in attracting investors to your business can be greatly enhanced when they're protected from personal liability by virtue of your incorporation status.

I operate my business from my home state. I have heard there are advantages to incorporating my business in Delaware or Nevada. Where should I incorporate?

While operating your business from your home state is probably the most cost effective, both Delaware and Nevada can offer advantages that other states can not.

Some of the reasons customers choose to incorporate their online business in Nevada include:

Out of state businesses don't pay Delaware corporation taxes.

There is no minimum capital requirement to form a Delaware business entity.

There are minimal reporting and disclosure requirements for Nevada corporations.

There is no personal income tax in Nevada for non-residents.

There is no IRS information sharing agreement for Nevada corporations.

A factor to consider, when forming a company in any given state, is that the company may also have to qualify to do business in other states where it owns property or otherwise conducts business. Generally, qualifying a company to do business in a state other than its state of formation may require filing fees or other documentation. Also, if a company fails to qualify to do business in a required state, it may be subject to penalties.

incorporate.com can help you form a business online in any of the 50 states or the District of Columbia in as little as 10 minutes. We have formed more than 300,000 businesses nationwide for entrepreneurs just like you.

I have a great idea for an online business. What steps do I take to get started and will forming an entity help raise the capital I need to successfully launch the business?

If you are looking to incorporate your online business, incorporate.com's website provides many links to get the answers you need to prepare for success. We have business specialists ready to assist you today.

If business ownership has always been your dream, but you realize your idea is too big to go it alone, forming a business entity allows you to share the responsibility. Incorporating or forming an LLC allows you to offer shares of ownership to potential investors. Start with a business plan to get others excited about your idea. Decide how you will set par value to get the capital you need to get started. Not all investors have to be financial resources. Some can help you launch your business by sharing their expertise. With the right combination of investors, you will be on your way to business ownership.

For an online business, in which state should I incorporate or form my limited liability company?

In regards to online incorporation, our customers usually incorporate or form their LLC in the state where they intend to conduct the majority of their business. However, there are many factors to consider when deciding where to form a company. Each state has a different fee structure for costs associated with business formation. General laws governing the actions and liabilities of the corporation or LLC, as well as tax laws within each state also play an important role.

A factor to consider, when forming a company in any given state, is that the company may also have to qualify to do business in other states where it owns property or otherwise conducts business. Generally, qualifying a company to do business in a state other than its state of formation may require filing fees or other documentation. Also, if a company fails to qualify to do business in a required state, it may be subject to penalties.

Many business owners choose to form their business in Delaware because of its advanced and flexible laws governing corporations and LLCs.

What is a business license and do I need one to operate my Internet business?

A business license is a business tax registration certificate issued by the state in which you operate your business. You will need one to start up your online incorporation. Local governments want to be assured that everyone starting a business is properly registered and pays their local taxes. As well, you may be required to obtain a wholesale or retail license and a Federal Tax ID based on the type of business you own. Requirements for business licenses vary by state.

Can a business entity buy and own domain names?

Yes, it is a good idea to select and buy domain names for your online businesses. If you think you might expand your business and offer more products or services in the future, consider purchasing additional domain names now. They are sold by the thousands everyday and the name you want has a better chance of availability if you get it now.

I incorporated my business a few years ago. My online business is part of that corporation, but operates under a different name. Do I need a fictitious name filing?

Yes, incorporate.com can help you remain compliant with your state and local jurisdictions through registering your online business name(s) by completing a fictitious business name filing. This is sometimes referred to as a doing business as (DBA) filing.

In what states do I have to pay sales tax if I have an online business?

If you incorporate your business online you are required to collect and pay a sales tax when they deliver products and some services to a state in which they have a physical presence. Some products or services are exempt. Rules and regulations vary by state and sometimes within the state. Consult your accountant or a tax specialist for more specific information about your state.

What are the advantages of filing in Delaware for an Internet business?

Delaware's general corporate law is said to be the most advanced and flexible business formation state in the nation. More than half of all US publicly traded companies and 60% of the Fortune 500 call Delaware home for their businesses.

Some of the reasons for Delaware's popularity include:

Delaware business Court of Chancery has written most of the modern US corporation case law.

There is no personal income tax in Delaware for non-residents.

Delaware state government is business friendly and accessible.

Delaware corporations are not subject to state corporate income tax if they operate their business outside of Delaware.

Delaware has no minimum capital requirement.

I operate multiple online businesses. Should I proceed with filing a Series LLC?

A series LLC can be thought of as an organizational umbrella of one LLC with multiple "series" or "cells." Series LLCs are generally of interest to individuals who have several large assets. The advantage of the series LLC is the asset protection and anonymity provided to its members, as well as a cost savings recognized through the reduction of paperwork when compared with organizing separate LLCs for each business. A properly formed and maintained series LLC will treat each cell as a separate entity, with its own rights and obligations. This means if someone filed a suit against a single series or cell and won, then only the assets of that cell would be at risk. The series LLC originated in Delaware, but the laws of some other states (such as Illinois and Oklahoma) also provide for the formation of a series LLC. incorporate.com has extensive experience with set up and maintenance of a series LLC.

Do you offer Registered Agent services?

Yes, incorporate.com provides registered agent services in all 50 states and the District of Columbia. Corporations, LLCs and other business entities are required by statute to have a local registered agent in the state where the entity is formed and for the states in which it is qualified or registered to conduct business. The registered agent receives legal process and compliance mail on behalf of the business in the applicable state and is responsible to forward all such items to their designated contact for handling. incorporate.com has more than 100 years of experience handling critical documents for its customers. It's simply another service we provide to allow you more time to focus on your business with less worry about missing important state communications.

I operate several online businesses, but am located outside of the United States. If I form an entity in the US, how will I receive my corporate mail?

incorporate.com offers International Mail Forwarding services for letter mail to Delaware and Nevada companies. At the end of each business week, we will forward letter mail to you via first class. Set up mail forwarding now.

e-Business Resource Center

As an online business owner, you focus on ways to attract new customers to your site. incorporate.com supports your efforts and offers useful products and services to assist you. From finding necessary permits to getting your Employer Identification Number (EIN), we save you time and allow you to focus on your everyday business tasks.

For a full list of products and services offered by incorporate.com, check out Our Services. We'd like to offer the following services in particular to your online business: